" OPTION SPREADS "

[KIRBY]

this should be interesting . sitting on sidelines til market get volatility and not going up every day :) lol

CBOE And C2 Plan To Launch Mini-Options On March 18 For AAPL, AMZN, GOOG, GLD And SPYLast update: 3/5/2013 1:30:00 PMCHICAGO, March 5, 2013 /PRNewswire via COMTEX/ -- CBOE Holdings, Inc. (CBOE) announced today that Chicago Board Options Exchange, Incorporated (CBOE) and C2 Options Exchange (C2) plan to launch trading in "mini-options" that are one-tenth the size of standard options on five popular stocks and exchange traded funds (ETFs). Mini-options on Apple (AAPL), Amazon (AMZN), Google (GOOG), the SPDR Gold Trust ETF (GLD), and the SPDR S&P 500 ETF Trust (SPY) will begin trading on Monday, March 18. "Many retail customers hold less than 100 shares of these higher-priced stocks in their portfolios," CBOE Chairman and CEO William J. Brodsky said. "We're excited to begin offering mini-options, which will give investors the ability to hedge their positions and trade options on these stocks more economically than with standard-sized options." Mini-options contracts feature specifications identical to those of standard-sized options contracts on the above securities, except: -- Mini-options contracts represent 10 shares of the underlying security versus 100 shares for standard-sized options contracts; and -- Mini-options contracts trade under a different trading symbol than standard-sized options contracts. Mini-options carry the number "7" at the end of the security symbol. For example, the Apple mini-options symbol is AAPL7. In addition to standard monthly expiration dates, non-standard expiration dates (i.e., Weeklys options series, Quarterlys option series and LEAPS) will be eligible for mini-options trading. Plans also call for minimum price movements to be the same in both standard-sized options and mini-options, pending regulatory approval. The following Designated Primary Market Makers (DPMs) have been appointed for mini-options for CBOE (C2): -- AAPL -- Morgan Stanley & Co. LLC (c2:Wolverine Trading)(c2:LLC) -- AMZN - Merrill Lynch Professional Clearing Corp. (c2:Timber Hill)(c2:LLC) -- GOOG - Susquehanna Securities (c2:Timber Hill)(c2:LLC) -- GLD -- Citadel Securities, LLC -- SPY-- Wolverine Trading, LLC C2 did not appoint DPMs for GLD and SPY mini-options. At C2, DPMs are appointed only in equity classes that are part of the options Penny Pilot Program. For more information on mini-options, see , Regulatory Circular RG13-037 and Regulatory Circular C2-RG13-014 at . About CBOE Holdings CBOE Holdings, Inc. (CBOE) is the holding company for Chicago Board Options Exchange (CBOE), the CBOE Futures Exchange (CFE) and other subsidiaries. CBOE, the largest U.S. options exchange and creator of listed options, continues to set the bar for options and volatility trading through product innovation, trading technology and investor education. CBOE Holdings offers equity, index and ETP options, including proprietary products, such as S&P 500 options (SPX), the most active U.S. index option, and options and futures on the CBOE Volatility Index (the VIX Index). Other products engineered by CBOE include equity options, security index options, LEAPS options, FLEX options, and benchmark products such as the CBOE S&P 500 BuyWrite Index (BXM). CBOE Holdings is home to the world-renowned Options Institute and , the go-to place for options and volatility trading resources. CBOE is regulated by the Securities and Exchange Commission (SEC), with all trades cleared by the OCC. CBOE-OE CBOE-2 CBOE�, Chicago Board Options Exchange�, Flexible Exchange�, FLEX�, LEAPS�, CBOE Volatility Index� and VIX� are registered trademarks, and BuyWrite(SM), BXM(SM), SPX(SM), and The Options Institute are service marks of Chicago Board Options Exchange, Incorporated (CBOE). Standard & Poor's�, S&P� and S&P 500� are registered trademarks of Standard & Poor's Financial Services, LLC and have been licensed for use by CBOE. All other trademarks and service marks are the property of their respective owners. SOURCE CBOE Holdings, Inc. Copyright (C) 2013 PR Newswire. All rights reserved

[KIRBY]

Markets flat , almost no volatility. time to sit on hands.

[KIRBY]

BIDU dropped thru support level 95.30..p 94.57 Feb 16 P/ 90 / .05x.08

[KIRBY]

Here is the Link to TastyTrade.

https://www.tastytrade.com/tt/

[KIRBY]

Have been watching TD ameritrades TOS Tastytrades live trading @ Tastytrade.com have learned so much highly recommend it. If you have a TOS account its free , if not $90 a month.
kirby

[KIRBY]

BIDU trying to hang tough , I still think she drops down thru 95.30 level. Wish the volatility would pick up.

http://stockcharts.com/h-sc/ui?s=BIDU&p=D&yr=0&mn=6&dy=0&id=p35719893815&a=291685335

[KIRBY]

BIDU puts 15,841, maybe we drop more. IV 27%

[KIRBY]

BIDU puts increasing 15,295

[KIRBY]

BIDU puts 15,266 now P/ 96.05 .

[KIRBY]

BIDU IV picking up 28% Calls 12,123 x Puts 15,025 P 96.13
HV 73%

[KIRBY]

HLF dropping a little. still holding some puts / p 35.72

[KIRBY]

BIDU feb 16 / 90 strike .20x.22 vol picking up over 600k

[KIRBY]

BIDU good volume and big red candles / volume bars.P 96.18 and dropping.

[KIRBY]

If BIDU drops down thru 95.30 she is gone. today stopped @ 95.91 mark . I did not see any covering to worry about. IMO we will continue to see more downgrades .I think we see red blood in the markets tomorrow , its time for some realistic major blood shed.
kirby

[KIRBY]

LIVE trading by Tasty. good spread info using TOS platform

https://www.tastytrade.com/tt/live

[KIRBY]

might get my wish. Baidu Cut to Hold From Buy by T.H. Capital >BIDU
still holding Feb 16 90 PUTS / P 98.57 PM

kirby

[KIRBY]

Tasty trade list of 30 stocks with small spread.

tastytrade Stocks Symbol Last Net Chng Strength Meter Bid Ask
AAPL 450.50 0 Downtrend 452.56 452.67
AMZN 273.62 0 Range Bound 274.45 274.63
BIDU 107.92 0 Range Bound 108.55 108.73
C 42.80 0 Range Bound 43.09 43.10
CMG 299.62 0 Range Bound 299.49 301.00
COST 102.89 0 Range Bound 102.63 103.00
EBAY 55.19 0 Range Bound 56.01 56.07
EEM 44.31 0 Range Bound 44.19 44.20
EWJ 9.80 0 Range Bound 9.89 9.90
FB 31.08 0 Uptrend 31.38 31.39
FXI 41.53 0 Range Bound 41.22 41.23
GLD 161.42 0 Range Bound 160.90 160.91
GOOG 753.83 0 Range Bound 755.00 755.20
GRPN 5.18 0 Range Bound 5.15 5.16
GS 144.96 0 Uptrend 144.28 144.48
HPQ 17.01 0 Uptrend 17.07 17.09
IBM 204.42 0 Range Bound 204.43 204.75
IWM 89.29 0 Range Bound 89.68 89.69
MSFT 27.63 0 Range Bound 27.45 27.46
NFLX 146.86 0 Uptrend 146.21 146.79
PCLN 679.55 0 Range Bound 680.10 682.00
RIMM 17.74 0 Uptrend 18.26 18.27
SBUX 54.57 0 Range Bound 56.81 56.85
SLV 30.65 0 Range Bound 30.50 30.51
SPY 149.41 0 Range Bound 149.91 149.91
TLT 119.67 0 Range Bound 118.56 118.59
UNG 19.53 0 Range Bound 19.54 19.56
USO 34.76 0 Range Bound 34.89 34.91
VXX 22.80 0 Downtrend 22.88 22.89
WFM 93.55 0 Range Bound 93.36 93.99
X 24.22 0 Range Bound 24.36 24.52
XLE 76.17 0 Range Bound 76.54 76.56
XLF 17.39 0 Range Bound 17.46 17.49
XLU 36.05 0 Range Bound 36.05 36.24
XRT 66.19 0 Range Bound 66.35 66.56
YHOO 20.44 0 Range Bound 20.44 20.50
ZNGA 2.47 0 Range Bound 2.46 2.49

[KIRBY]

Found this and think it will be helpful with spreads.

http://www.oscreener.com/options_screener/Bull_Call_Spread

[KIRBY]

little bounce on BIDU , but volume drying up. think its a little covering and hoping for big drop to continue downward trend. .

[KIRBY]

held my Feb 16th BIDU puts/ 90 strike. sold @ bottom and rebought. I don't think she will bounce to fill the big gap down. put her on a yearly / weekkly candle chart. she is in downtrend imo. think will hit $90 and dip tad below then bounce.
kirby

[KIRBY]

YHOO rising so Bot to close my 3 contracts for .23 cents. + $36 - trading fees. not much but gives me a some what feel for calendar spreads.
kirby

[KIRBY]

Good video on Calendar spreads and how to analyze using TOS.
Dr. Terry Allen

[KIRBY]

[KIRBY]

today with Time/ Theta decay.

1/29/13 trade / Sold Feb 13 / 20 YHOO 3 calls @ .35
@.21 today
--------
.14 x 300 = $42
not a lot of money , but to show a live example of time decay working in your favor. will wait til around .5 cents
I am also doing this so I can practice.
kirby

[KIRBY]

paper trade for practice .
YHOO trading today @ 19.72 / 1/31/13

Bear Call Credit spread...stock should be trending flat to down.
Bought 2 March 13 ( 43 days left ) $20 Call @ >51 cents x 200 = $102.00
Sold 2 March 13 ( 43 days left )18 Call @ $1.85 x 200 = $ 370.00

will post results when I close trade

kirby

[KIRBY]

YHOO closed @ 20.10 . could have bot to cover/ close my short term call and sell to open little higher. decided to see if she comes back down and time decay will help.
kirby

[KIRBY]

HLF dropping large / dwn 2.41 still holding deep otm puts Feb 16 / 17.5

[KIRBY]

not a spread / Bot SODA Feb 16 57.50 calls @ .50 70x70 2x2

[KIRBY]

http://www.optionseducation.org/strategies_advanced_concepts/strategies/long_call_calendar_spread.html

[KIRBY]

http://www.optionseducation.org/strategies_advanced_concepts/strategies/bear_put_spread.html

[KIRBY]

http://www.optionseducation.org/content/oic/en/strategies_advanced_concepts/strategies/bull_call_spread.html

[KIRBY]

If I wanted to " buy to close " my short term trade that I just opened today @ close , could have @ .29 + .06 cents X 300 . but in the morning allowing for time decay w/ Theta -0.01 cha ching it will pick up speed while I do nothing :)
kirby

[Newly2b]

Yup, still traveling. Leaving next week for points south, too cold here in So.Calif. this winter. . .

As to options, when one trades options, one looks for the same setups on the chart of the underlying that one would use to trade the stock so if the charts aren't working for you, trading options will only make a difference in that your at-risk money is less. One does not trade the chart of the option, but rather the chart of the underlying and enter/exit at the same points one would if trading the underlying (support/resistance). If one is bullish on the underlying one sells a Put or buys a Call, and vice versa if one is bearish on the underlying. Personally I prefer to sell an option rather than buy one because time decay always works in favor of the seller -- IOW as time passes, even if the price of the underlying is flat, the price of the option would drop because the portion of the cost that reflects the time premium declines, and this allows the seller of the option to cover his short position for a gain even with no movement in the stock's price.

Hope this helps.

Newly

[lawtell]

Hello Newly

I'm a day trader so I don't normally have any positions to sell calls against.
The last 2 months I haven't traded much, seems the indicators/chart setups that I use are not working.

Looking for another game to try.

You still traveling?

[Newly2b]

Hi, lawtell. You might consider trading covered calls against positions you currently hold, which is the easiest option play to master if you are new to options.

Newly

[KIRBY]

Great welcome to the board. I do recommend you go to the Option Education board and start with the first post. Lee is a gifted options trader. I trade part-time so will be in and out. Have a good one .
kirby
ps. I do notice you are a grandfathered member , which tells me you are no stranger to trading.

http://investorshub.advfn.com/Option-Education-12203/

[lawtell]

I don't know much about options Kirby but I'm going to watch your board and might try a few options.

[KIRBY]

Its " EXHAUSTING " chasing there directional trades ! Not going to do it anymore. Give me slow and steady gains any day.

[KIRBY]

Going to watch this closely last 10 day til expiration . read that THEA @ 10 day drops price wise 6 times the amount and increases.
kirby

[KIRBY]

I can already tell first mistake...should have bot YHOO leap. July 13 to close and changing way to fast.


dumped July 13/ 20 calls for $1.28 -@ .25 cents and trading fee

BOT Jan 2014 / 20 strike 3 contracts for $1.96 each. now I can kick back and rake it in.lol

[KIRBY]

Bot first (so won't be naked ), July 13th / 20 YHOO 3 calls @ $1.46
to hold and trade off for awhile. not a leap but longer term

Sold Feb 13 / 20 YHOO 3 calls @ .35 have 17 days left and hoping for time decay . $105.00 value . will re-buy and keep difference. little tricky because of earnings. all on paper so I will be safe. Did take awhile to sell and I am trying to keep the Delta under .50 she is @ .49 . will report back to see how she works out. Trying to keep is realistic for small trading account.
kirby

choose YHOO want a stock trending sideways or slowly going down

[KIRBY]

Morning , great idea . That way it will help me practice also.
Trading part-time so will be in and out. Thanks again for you time and help .
kirby

[Newly2b]

'Mornin', Kirby. While you're practicing Diagonals, why not do some papertrades and post them here along with your rationale for the trade? That might be helpful to others and perhaps Lee would drop by with some helpful hints?

Newly

[KIRBY]

video I found

[KIRBY]

Not going to be posting here til I get my account ready to trade spreads.

Going to do Diagonals first til I get the feel for it.
Here is a link to The option education board discussing them....written by Lee . I strongly encourage all option traders to bookmark and follow him.
kirby

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=27853739

[KIRBY]

Have a good evening .
kirby

[KIRBY]

going to hold SLV overnight and sell in the morning.hoping for big gap down before they run her back up. suicide maybe....evil genius ??? oh heck no.P.29.87 @ close.
kirby

[KIRBY]

picked up a few DEEP OTM PUT feb 16 for HLF 17.5 @ .10 just for lotto play

[KIRBY]

I think til I get a feel for the SPY movements , will watch it like a hawk ! I am using Quotetracker thru my TD Ameritrade , when my alerts go off scares the you know what out of me !lol
kirby

[Newly2b]

Every trader has a different theory as to where to set stop losses. It is all in what one is comfortable with. Some prefer to set the stop depending on just how much of a loss they are willing to take on that trade. Others prefer to set the stop at whatever point on the chart indicates that the trade has definitely gone bad regardless of the dollar amount of the loss involved (enter at support, sell at resistance).

I personally almost never set a hard stop (except when I'm going to be away from the computer) but prefer to set a mental stop for both loss and gain on every trade I enter and then set an alert on my trading platform and when it hits that point reevaluate the chart and my position (if any). I use this strategy to enter trades as well, and prior to entering I look at the daily chart to see how much that issue generally moves in a day and exactly where Support and Resistance are. This helps me determine what strike to play and also where to set my entry and stop.

Newly